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Raising consumption expenditure is the magic bullet - Moneycontrol.com

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There seems to be a strong case for increasing government spending aimed at creating better quality jobs and bringing some social security benefits to those in the informal sector

October 04, 2021 / 08:48 AM IST

Raising consumption expenditure is the magic bullet

There seems to be some contradiction between the growth performance of the India economy on the one hand and its fiscal situation on the other. This calls for a bit of fine tuning, if not course correction. Consumption expenditure needs to be pushed instead of focusing on the fiscal deficit. Once this is done growth, revenue and the right fiscal deficit will follow. The expectation has been that after a year of 7.3 per cent GDP contraction in 2020-21, the...

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